Fixed Cost Table: 1 March 2022 - 28 February 2023
Rates per kilometre, which may be used in determining the
allowable deduction for business travel against an allowance or
advance where actual costs are not claimed, are determined by
using the following table:
Where the value of
the vehicle ¾
exceeds R95 000 but
does not exceed
R190 000
exceeds R190 000 but
does not exceed
R285 000
exceeds R285 000 but
does not exceed
R380 000
exceeds R380 000 but
does not exceed
R475 000
exceeds R475 000 but
does not exceed
R570 000
exceeds R570 000 but
does not exceed
R665 000
However, this alternative is not available if other compensation in the
form of an allowance or reimbursement (other than for parking or toll
fees) is received from the employer in respect of the vehicle.
Note: The rates in the Fixed Cost Table are adjusted periodically. The
rates in the table on this page relate only to the 2022/23 tax year, i.e.
from 1 March 2022 – 28 February 2023.
Alternatively: Where an allowance or advance is based on the actual
distance travelled by the employee for business purposes, no tax is
payable on an allowance paid by an employer to an employee, up to the
rate published on the SARS website www.sars.gov.za under Legal
Counsel / Secondary Legislation / Income Tax Notices / Fixing of rate per
kilometre in respect of motor vehicles, regardless of the value of the
vehicle.
Employees may also be entitled to claim a reduction on the fringe
benefit in respect business mileage travelled in motor vehicles provided
by an employer. In order to claim such a deduction, an accurate record
of mileage travelled is required. This logbook may also be used for this
purpose. The same minimum information as set out above is also
required for company cars. For the rates for other tax years please visit
www.sars.gov.za or call the SARS Contact Centre on 0800 00 7277.
The actual distance travelled during a tax year, and the distance
travelled for business purposes substantiated by a log book, are
used to determine the costs which may be claimed against a
travelling allowance.
The fixed cost must be reduced on a pro-rata basis if the vehicle
is used for business purposes for less than a full year.
No fuel cost may be claimed if the employee has not borne the
full cost of fuel used in the vehicle, and no maintenance cost may
be claimed if the employee has not borne the full cost of
maintaining the vehicle (e.g. if the vehicle is covered by a
maintenance plan).
80% of the travelling allowance must be included in the
employee’s remuneration for the purposes of calculating PAYE.
The percentage is reduced to 20% if the employer is satisfied that
at least 80% of the use of the motor vehicle for the tax year will
be for business purposes.
The provisions of section 8(1)(b)(iii) are applicable in respect
of the recipient of an allowance or advance; and
No other compensation in the form of a further allowance or
reimbursement (other than for parking or toll fees) is payable
by the employer to that recipient, that rate per kilometre is, at
the option of the recipient, equal to 418 cents per kilometre.
